SAN FRANCISCO: The New York Stock Exchange is having preliminary talks with the London Stock Exchange for a possible merger, according to highly-placed sources.
These sources point out to a Securities Exchange Commission filing by NYSE Group Inc., which owns the New York Stock Exchange, that it is holding preliminary merger talks with more than one exchange. This could well include the highly vulnerable London Stock Exchange, the sources say.
The firm said in the filing, "We routinely engage in discussions with industry participants regarding potential strategic transactions. We are currently engaged in discussions with certain participants, although no definitive terms have been discussed or agreements reached."
Spokespersons for both the exchanges refused to comment on the issue.
The sources indicated that the chief executives of the two exchanges -- John Thain of the New York Stock Exchange and Clara Furse of the London Stock Exchange -- have exchanged notes in the recent months. These talks have assumed strategic importance as the New York Stock Exchange's smaller rival Nasdaq is now the largest stake owner of the London Stock Exchange, after it had withdrawn from the 2.4-billion-pound bidding for the exchange.
There are people who believe the London Stock Exchange is interested in pursuing its talks with Nasdaq as well.
The New York Stock Exchange is not confining to looking at the London Stock Exchange alone. It has other targets as well, and has been initiating talks in this regard, according to the sources. However, the exchange is not permitted to make any public statements about specific plans until it completed its share offering worth $2 billion.
Meanwhile, a source in the London Stock Exchange, who wishes to remain anonymous, has told mediapersons that Thain had Furse had talked on telephone last week and the topic was a friendly merger between the two exchanges.
Furse is also understood to be venturing other strategic alliances, including a merger with Belgium-based Euronext.
